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Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2011 NOTE 13 - LONG-TERM LIABILITIES - Continued C. Summary of Defeased Debt Outstanding The last installment of the Capital Improvement Revenue Bonds Series 1980 totaling $390,000 was defeased on October 1, 2010. Since governmental obligations are held in escrow for the payment of principal and interest, the bonds are not liabilities of the County. D. Compensated Absences Both Governmental Activities and Business -type Activities compensated absences are paid by the fund which normally pays the personnel services costs of the employee. E. Conduit Debt Obligations Indian River County issued various Industrial Revenue Bonds over the years which provide financial assistance to private -sector entities for the acquisition, construction and equipping of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private -sector entity served by the bond issuance. Neither the County, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. NOTE 14 - PROVISION FOR CLOSURE COSTS Current regulations of the U.S. Environmental Protection Agency (EPA) and the Florida Department of Environmental Protection (FDEP) require the Solid Waste Disposal District (SWDD) to place a final cover on closed landfill areas, and to maintain those areas for up to thirty years after closure. The SWDD annually obtains updated and revised estimates of total future closure and post -closure costs from its consulting engineers. The SWDD recognizes the expenses associated with the final closure and post -closure maintenance of the landfill areas over the active life of those areas. The provision for closure costs reported in the financial statements as operating expense represents the portion of these estimated future outlays which are allocable to the current year based on the amount of capacity used. The total unrecognized closure and post -closure costs are approximately $3.9 million. These costs will be recognized in future periods as the remaining capacity is filled. The County's policy is to fund 100% of the current year's allocation (based upon the consulting engineers' report) of both closure and post - closure care.